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NEW QUESTION: 1
A large utility wishes to issue a fixed rate bond to finance its plant and equipment purchases. However, it finds it difficult to find investors to do so. But there is investor interest in a floating rate note of the same maturity.
Because its revenues and net income tend to vary only predictably year to year, the utility desires a fixed rate liability. Which of the following will allow the utility to achieve its objectives?
A. Issue a floating rate note and hedge the risk of movements in interest rates by entering into an interest rate swap to pay floating and receive fixed
B. Issue a floating rate note and hedge the risk of movements in interest rates by entering into an interest rate swap to pay fixed and receive floating
C. Issue a floating rate note and immediately buy a similar floating rate note, together with a long position in interest rate futures
D. Buy a floating rate note and hedge the risk of movements in interest rates by entering into an interest rate swap to pay fixed and receive floating
Answer: B
Explanation:
Explanation
Choice 'a' is the correct answer as the issue of the floating rate note will provide the utility with the funds it needs, and the interest rate swap would offset the floating rate payment and leave it with a net fixed payment.
Choice 'd' is incorrect as the swap is in the wrong direction.
Choice 'c' is incorrect as buying and selling a floating rate bond would mean the utility will not have any funds that it wants to issue the note for, and combining it with interest rate futures would be just absurd.
Choice 'b' is incorrect as buying a floating rate note would use funds while the utility is trying to raise funds.
NEW QUESTION: 2
You are the program manager of the YGH Program. A vendor has recently completed his contracted work for your program. You agree that the vendor has completed the procured work so what document should you and the vendors now sign?
A. Invoice
B. Certificate of completion
C. Proposal agreement
D. Contract
Answer: B
NEW QUESTION: 3
An administrator needs to ensure all the mail stored on an email server is preserved in place.
How can Symantec eDiscovery Platform 8.0 assist in achieving this objective?
A. create a Custodian Notice specifying the email server where the mail is held and then the data will be preserved
B. create a System Admin Notice specifying the email server where the mail is held and then the data will be preserved
C. create a Custodian Notice and send it to an end-user whose email is on the mail server and the user needs to preserve the data
D. create a System Admin Notice and send it to the administrator responsible for the mail server and the email administrator needs to preserve the data
Answer: D
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